Shown below is a segmented income statement for Hickory Company's three wooden flooring product lines:

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below,

Open spreadsheet

Required:

If the parquet product line is dropped, what is the contribution margin for the strip line?

$!$

For the plank line?

$$

Which alternative $($keep or drop the parquet product line$)$ is now more cost effective and by how much?

Keep $$ by $

Feedhack

TCheck My Work

Look at contribution margin and adjust for dropping product line.